MOBILE, Alabama -- A pair of cousins who ran a tax preparation service in Mobile County pleaded guilty last week to federal tax crimes, admitting that they filed bogus returns to scam the government.

Gerrode Smith of Grand Bay, and Artemius Smith of St. Elmo pleaded guilty to tax conspiracy charges. Gerrode Smith also pleaded guilty to an added charge of preparing and filing false tax returns and bankruptcy fraud.

Under the plea bargain, prosecutors have agreed to ask a judge to dismiss 5 counts of aggravated identity theft, an offense that carries a 2-year mandatory, consecutive sentence. Prosecutors also will recommend lenient sentences for both defendants.

The case is one of several prosecutions that federal authorities have pursued in the Mobile area in the past couple years, including one involving a Monroeville tax preparer who was sentenced last week to more than 6 years in prison for filing hundreds of thousands of dollars’ worth of bogus tax returns.

"Taxpayers need to be cautious about selecting a return preparer because it is the taxpayers that are ultimately responsible for paying back any fraudulent refunds, along with interest and penalties," Internal Revenue Service Criminal Investigation Special Agent in Charge Rodney Clarke said in a prepared statement.

According to court records, Gerrode and Artemius Smith owned Smith’s Tax Service. They admitted to illegally claiming a first-time homebuyer’s credit on their tax returns in 2009, even though they had not bought houses.

Additionally, Gerrode Smith admitted that he failed to list the business and bank accounts on bankruptcy forms, hiding them from creditors.

Prosecutors have agreed to pretrial diversion for Gerrode Smith’s wife, Pamela Smith, which means the charges against her would be dismissed if she completes a term similar to probation. 